Sandoz, the generics arm
Novartis’s (NVS) Sandoz is a market leader in differentiated generics. Sandoz reported a 6% decrease in its YoY revenues to ~$2.42 billion during the third quarter of 2018 as compared to $2.58 billion during the third quarter of 2017. The decrease includes a 4% decrease in operating revenues and a 2% negative impact of foreign exchange during the quarter.
The above chart compares the quarterly revenues for Sandoz since the first quarter of 2017.
Performance of Sandoz products
The US markets reported a 17% decrease in operating revenues to $661 million during the third quarter of 2018, mainly due to the competition from other products.
The European markets reported a 1% increase in operating revenues to $1.2 billion during the third quarter of 2018, driven by continued uptake of retail products and biosimilars.
The Asia, Africa, and Australasia markets reported 6% growth in operating revenues to $366 million, while the Latin America markets reported a 2% growth in operating revenues to ~$96 million during the quarter.
The biopharmaceuticals portfolio reported revenues of $349 million during the third quarter of 2018, a 21% increase in YoY revenues at constant exchange rates. The growth was driven by an increase in sales from the US and European markets. The growth in the European markets was driven by strong sales of Erelzi and Rixathon, while strong sales of Omnitrope and Zarxio drove the growth in US markets.
Retail generics reported revenues of $1.9 billion during the third quarter of 2018, a 6% decline in YoY revenues at constant exchange rates. The decline was due to a 23% decrease in the operating revenues from the US.
The anti-infective franchise reported revenues of $323 million, an 8% decline in YoY revenues at constant exchange rates. The First Trust Value Line Dividend ETF (FVD) holds 0.5% of its holdings in Novartis (NVS), 0.5% in Pfizer (PFE), 0.5% in Johnson & Johnson (JNJ), and 0.5% in GlaxoSmithKline (GSK).